custom maid virginia beach va

Insurance vs Bonding, the Whole Story

Licensed, Bonded, Insured???

You are  looking into hiring someone to do work in or around your home.  They probably advertise that they are licensed, bonded and insured.  But what exactly does that mean to you and your security?  First off, a license in Virginia Beach merely means that the business is registered with the city and pays a fee.  It actually means nothing to you or your security.  It means the business is legit and is paying taxes.

Insurance is definitely something that is important to you.  When a business has insurance it protects you from several things.  The Commonwealth requires all businesses with three or more employees to carry workers’ compensation insurance.  This means that if one of their workers suffers an injury (or worse) while on the job, the insurance will cover the medical expenses.  When necessary, insurance will pay wages to the employee while he or she is recuperating.  If the business does not have workers’ comp, then your homeowner’s policy would be on the hook to pay the bills and the lost wages.

Another type of insurance is liability insurance.  This means that if something in your home is damaged in some way, the policy will pay for repair or replacement of the item.  If you hire a company that does not carry liability insurance, then you will probably have to bear that cost.

What About Bonding?

A bond is something a business carries to guarantee the  honesty of their staff.  It would be what’s called a blanket bond which means that all employees of the business are covered.  If something goes missing and an employee of the business is convicted of the crime, then the bond will reimburse you up to the limits of the bond (usually $10,000).

Because the reality of bonding is that it is very difficult to collect, it is important that you ascertain that the business is getting complete background checks on all their employees.  It is even better if they do drug testing as well.

Ask For a Certificate of Insurance

When you hire someone to work in your home, ask for a certificate of insurance.  It is easy for them to call their agent who will send you the certificate.  Then you can rest comfortably knowing that you are protected.

Custom Maid is licensed by the City of Virginia Beach, bonded and insured and we will gladly provide you with proof.  We background check and drug test all employees.

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Editor’s Note:  We published this article in January 2015.  We have edited it for freshness, accuracy and comprehensiveness.